[2019년 제 4차] Local Shareholders, Corporate Community Responsibility, and Shareholder Value
작성자 : 관리자
조회수 : 204
게시일 :
2019-12-13
This paper shows that local shareholders lead firms to engage in corporate social responsibility activities
locally – corporate community responsibility (CCR). We find that mutual funds investing in local firms
tend to increase CCR. Our identification strategy suggests a causal effect of local shareholders on CCR.
Local shareholders and their firms employ CCR as business strategy and benefit themselves financially.
Our results indicate that CCR tends to increase firm performance, measured with Tobin’s Q, and operating
cash flows, especially in the consumer-oriented industries where customer relations are critical. In addition,
local shareholders (i.e., local funds) of higher CCR firms enjoy greater fund flows. Finally, we discuss
possible mechanisms through which local shareholders influence firms’ CCR policy.
